Download - Week 09€¦ · ABU DHABI | AL AIN | DUBAI | SHARJAH | JORDAN | KSA © Asteco Property Management | 2020 | asteco.com 35 YEARS | CELEBRATING THE PAST AND TRANSFORMING THE FUTURE |

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Week 09 SUNDAY, 01 MARCH 2020

ABU DHABI | AL AIN | DUBAI | SHARJAH | JORDAN | KSA

© Asteco Property Management | 2020 | asteco.com

35 YEARS | CELEBRATING THE PAST AND

TRANSFORMING THE FUTURE | Page 1

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY BUILDING CONSULTANCY OWNER ASSOCIATION

REAL ESTATE NEWS

UAE / GCC / MENA

COMMERCIAL REALTY SECTOR SEEN AS HUGE CONTRIBUTOR TO UAE'S ECONOMIC

GROWTH

UAE DEVELOPER SAYS NEW TOURIST VISA TO CREATE OPPORTUNITIES

DAMAC PROPERTIES GM REVEALS PLANS FOR SAUDI EXPANSION

MAJID AL FUTTAIM POSTS SLIGHT INCREASE IN ANNUAL EARNINGS, SEES IMPROVED

2020

UAE'S AZIZI HIRES SENIOR EXEC TO LEAD INTERNATIONAL EXPANSION

MODON PROPERTIES AWARDS DH2.37BN OF RIYADH CITY SOUTH CONTRACTS

WHY RIYADH IS SEEING A RISE IN THE NUMBER OF BUSINESS PARKS

SAUDI ARABIA REVEALS PLAN TO EXPAND NETWORK OF NEW ENTERTAINMENT HUBS

OMAN'S TRADED REAL ESTATE ACTIVITY RISES 4.9% YOY TO $7.2BN IN 2019

UAE LUXURY HOMES CAN DO WITH A DESIGN RESET

SAUDI ARABIA'S DAR AL-ARKAN ISSUES $400M SUKUK ON NASDAQ DUBAI

ROOM FOR GROWTH IN THE GCC: OPPORTUNITIES AND CHALLENGES IN THE HOTEL

SECTOR

OMAN REVEALS PLAN TO BUILD MUSCAT AIRPORT CITY IN MAJOR AVIATION PUSH

DUBAI

HOW DUBAI PROPERTY RENTAL RATES HAVE CHANGED OVER THE PAST DECADE

SAMANA DEVELOPERS LAUNCHES DH100 MILLION RESORT-THEME PROJECT

DUBAI'S DRAKE & SCULL MAKING SIGNIFICANT PROGRESS IN RESTRUCTURING PLAN,

SAYS CHAIRMAN

CHINESE INVESTMENT IN UAE REALTY ON BACK BURNER

HOMEFRONT: 'SHOULD DUBAI OWNERS STILL PAY SERVICE CHARGES DIRECTLY TO

DEVELOPERS?'

AZIZI COMPLETES WORK ON 284-UNIT FARISHTA IN DUBAI'S AL FURJAN

DUBAI'S SUNSET HOSPITALITY BUYS STAKE IN US BURGER CHAIN







WHY INDIANS, PAKISTANIS ARE RACING TO PICK UP STALLED DUBAI PROJECTS

FINLAND LOOKING TO BOOST UAE TRADE WITH EXPO 2020 DUBAI

DUBAI'S 3D PRINTED OFFICE BAGS GUINNESS WORLD RECORD

NORTHERN EMIRATES

ARADA UNVEILS MADAR AT ALJADA, SHARJAH'S NEWEST FAMILY ENTERTAINMENT

DESTINATION

WHAT TO EXPECT TO SEE AT SHARJAH'S NEW ENTERTAINMENT HUB

RAS AL KHAIMAH SEES NEAR-4% RISE IN TOURISTS TO 1.12 MILLION

SHARJAH CHAMBER LAUNCHES PROJECT FOR DEVELOPING INFRASTRUCTURE OF 10TH

INDUSTRIAL ZONE

INTERNATIONAL

MIDDLE EAST INVESTORS EYE OPPORTUNITIES OUTSIDE LONDON

INVESTCORP MAKES $164M ADDITION TO US PROPERTY PORTFOLIO

DUBAI HOLIDAY HOME OPERATOR INKS DEAL WITH INDONESIAN HOTEL FIRM

MIPIM GLOBAL PROPERTY CONVENTION POSTPONED







MIPIM GLOBAL PROPERTY CONVENTION

POSTPONED Saturday, February 29, 2020

An annual global property convention that takes place in Cannes each year has been postponed due to the

outbreak of the coronavirus.

The Mipim convention run by Reed Exhibitions was scheduled to run from March 10-13, but has now been

rescheduled to June 2-5 2020, organisers said in a statement on Saturday.

“The well-being of our clients and staff is our priority. Given the evolving context, the best course of action is to

postpone MIPIM to June,” said Paul Zilk, chief executive of Reed MIDEM, part of Reed Exhibitions.

Mipim attracts many of the property world's biggest investors and fund managers. About 23,000 people were

expected to attend this year's event and former French president Nicolas Sarkozy was due to give a keynote

address.

On Friday, organisers had issued a statement saying the event would go ahead as planned, stating that "as of

today, more than 90 per cent of exhibitors remain committed to attend".

However, a number of high-profile attendees, including consultancies Knight Frank and Cushman and Wakefield,

had taken the decision to withdraw and on Saturday the event's postponement was confirmed.

“This is not a decision we have taken lightly," Mr Zilk said. " We believe these new dates will provide the

international Mipim community with the opportunity to achieve their business objectives. We are grateful to our

clients for their support and constructive input during this challenging period, and we look forward to talking with

them in the coming days about Mipim in June,” he added.

Source: The National

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SHARJAH CHAMBER LAUNCHES PROJECT

FOR DEVELOPING INFRASTRUCTURE OF

10TH INDUSTRIAL ZONE Saturday, February 29, 2020

The Sharjah Chamber of Commerce and Industry (SCCI), in collaboration with the Department of Town Planning

and Survey, Sharjah Roads and Transport Authority (SRTA) and Sharjah Water and Electricity Authority (Sewa), has

announced the launch of the infrastructure development project for the 10th industrial zone in Sharjah.

The new project is one of the pioneering initiatives with the aim of reconstructing the whole area, providing the

best services for the people, and keeping pace with Sharjah's universal renaissance.

This would help promote the emirate's competitiveness, develop its economic environment and its investment

attractiveness, and enhance its sustainable development.

Under the guidance of His Highness Sheikh Dr Sultan bin Muhammad Al Qasimi, Member of the UAE Supreme

Council and Ruler of Sharjah, the facilities located on the project site will get a 50 per cent reduction of service

fees throughout the project implementation.

This was stated during the inauguration ceremony of the project which was held at the SCCI headquarters

recently. Abdullah Sultan Al Owais, SCCI chairman; Eng Salah bin Butti Al Muhairi, adviser to the Department of

Town Planning and Survey and deputy chairman of the Sharjah Urban Planning Council; Dr Eng Rashid Al Leem,

chairman of Sewa; Eng Yousef Saleh Al Suwaiji, chairman of the SRTA; Waleed AbdelRahman BuKhatir, second

vice-chairman of the SCCI; a number of board of directors; the SCCI's director-general Mohammad Ahmed Amin

Al Awadi; and media representatives, attended the inaugural ceremony.

The project, according to the implementation contracts, covers an area of 2.16 million square metres, and it will

be carried out over 18 months by Sharjah Contracting and Khatib and Alami.

The contract also includes the establishment of a modern and advanced road network, the implementation of a

rainwater and lighting network and the rehabilitation of sidewalks and parking lots as per the highest safety and

security standards and best international practices.

Source: Khaleej Times

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RAS AL KHAIMAH SEES NEAR-4% RISE IN

TOURISTS TO 1.12 MILLION Thursday, February 27, 2020

Ras Al Khaimah Tourism Development Authority (RAKTDA) on Thursday announced that tourist arrivals to the

emirate were up almost 4 percent to 1.12 million in 2019.

The authority also said hotels in Ras Al Khaimah reported revenue per available room (RevPAR) of $114.90, among

the highest in the region.

This was reflected by the strong yearly occupancy rates, averaging at 74 percent, added RAKTDA.

Last year’s inbound growth was driven by a number of events such as the launch of the Jais Sky Tour, and the

hosting of the Ras Al Khaimah Fine Arts Festival, Ras Al Khaimah Half Marathon, Tough Mudder and the UAE Tour.

In addition, corporate activity and MICE participation further contributed to the growth in visitor numbers, a

statement said.

Russia, India, Poland and Kazakhstan all saw double digit increases as tourist source markets compared to 2018

figures.

Raki Phillips, CEO of RAKTDA, said: “2019 was a positive year for Ras Al Khaimah, as we saw increased footfall from

key markets resulting in the overall arrival growth of almost 4 percent.

“Ras Al Khaimah is in the midst of its three-year destination strategy which aims to broaden its reach through

increased segmentation. A key focus has been on higher yield visitors such as MICE delegates, as well as

prioritising sustainable nature-based adventure and culture driven activities and experiences.”

RAKTDA is targeting 1.5 million visitors by 2021, with the emirate preparing to add 6,200 rooms to the 6,499

currently available over the next three years.

Source: Arabian Business

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DUBAI'S SUNSET HOSPITALITY BUYS STAKE

IN US BURGER CHAIN Wednesday, February 26, 2020

Dubai-based Sunset Hospitality Group has announced it has acquired a minority share in the Black Tap brand, the

American eatery known for its burgers and milkshakes.

Sunset, which holds the rights for Black Tap in Europe and the Middle East, said the investment will extend its

partnership with the Black Tap brand, without saying how much it had invested.

It added that two new Black Tap outlets will open at The Dubai Mall and Mall of the Emirates in the second

quarter of 2020, bringing the total to nine across the Middle East region.

The new braches are expected to create jobs for more than 120 people in Dubai.

Sunset also announced that, following on the success of Black Tap Geneva, it will expand its portfolio in

Switzerland, with a new Black Tap restaurant in Zurich.

“When we first introduced the Black Tap concept in the UAE, we were amazed by the great feedback from guests

who loved the unique food offering... This fueled our decision to open more outlets within a short span of time.

As we enter the new decade, we believe that this is the right time to further expand the concept into the region

and abroad," said Antonio Gonzalez, CEO, Sunset Hospitality Group.

"The decision to invest in the Black Tap brand globally is an ambitious move, and we are convinced that we are

looking at great returns as the company has ambitious growth plans around the world.”

The upcoming three Black Tap outlets are part of the more than 10 new outlets that Sunset plans to open this

year, taking its portfolio over 30 venues by year-end.


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SAUDI ARABIA'S DAR AL-ARKAN ISSUES

$400M SUKUK ON NASDAQ DUBAI Wednesday, February 26, 2020

Saudi Arabia’s Tadawul-listed real estate developer, Dar Al-Akan Real Estate Development Company has listed its

$400m (SAR1.5bn) sukuk on Nasdaq Dubai.

With the latest listing, Dar Al-Arkan’s total sukuk value listed on Nasdaq Dubai totals to $2bn (SAR7.5bn), the UAE's

state-held news agency, Wam reported. This includes the sukuk listing of $600m (SAR2.3bn) in October 2019, and

two other sukuk listings of $500m (SAR1.9bn) each in 2017 and 2018.

In October 2019, the company closed the $600m (SAR2.5bn) sixth tranche of its sukuk issuance under its Islamic

Sukuk Programme, which was announced by the developer on 2 October 2019, and the bonds were listed on the

Irish Stock Exchange (Euronext Dublin).

In a stock market filing at that time, the company said the order book for the sukuk was opened on 9 October

2019 and closed on the same day, adding that the sukuk was issued for a five-year period at a profit rate of 6.75%

each year.

Dar Al Arkan is working on Dubai’s I Love Florence Tower, the interiors for which have also been designed by

Italian fashion house Roberto Cavalli.

Source: Construction Week Online

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AZIZI COMPLETES WORK ON 284-UNIT

FARISHTA IN DUBAI'S AL FURJAN Wednesday, February 26, 2020

Dubai-based Azizi Developments has completed construction work on the 284-unit residential building Farishta,

located in the emirate’s Al Furjan area, with the developer of Azizi Riviera in MBR City having unveiled the project.

Comprising 137 studios, 124 one-bedroom units, 15 two-bedroom apartments, and eight penthouses, handover is

imminent for the project.

In December 2019, Azizi Developments had recorded sale of all 284 units within the residential tower, 74% of

which was sold to UAE residents across 44 nationalities. Among these buyers, 27% were UAE nationals, Saudi

Arabian investors accounted to 8%, and remaining 18% was purchased by buyers from across 19 different

countries.

Speaking about the project, founder and chairman of Azizi Developments, Mirwais Azizi, said that Farishta

reflected “world-class construction standards”.

“With rental yields being on the rise in this community, we are delighted to have successfully delivered thousands

of homes to local and international investors and end-users representing over 100 nationalities in Al Furjan.”

Azizi added that the developer is aiming for “many more completions and deliveries” in 2020.

The residential development provides easy access to the Expo 2020 Dubai site, Ibn Battuta Mall, Dubai Marina,

and JBR.


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UAE'S AZIZI HIRES SENIOR EXEC TO LEAD

INTERNATIONAL EXPANSION Thursday, February 27, 2020

UAE-based Azizi Developments has strengthened its senior executive team as it embarks on an international

expansion plan.

Former Emaar Properties executive Nima Khojasteh has been appointed as executive director of sales and agency

and will oversee the expansion to markets such as London, Saudi Arabia and Nigeria.

Khojasteh will spearhead the formation of new sales presences in oversees markets as the developer aims to

build on its success in its home market.

A seasoned industry veteran with over 14 years of experience in the real estate sector, he has previously worked

with developers such as Dubai Properties Group and Emaar Properties.

Sandeep Pathania, director of human sesources at Azizi Developments, said: “With his extensive background and

accomplishments in the realm of real estate sales management, Nima will help us drive our strategy forward and

add to the implementation of best practices in the departments he leads.”

To date, Azizi has delivered 14 projects across Palm Jumeirah, Dubai Healthcare City and Al Furjan, valued at a

total of over AED2.5 billion.

In addition to its 54 ongoing projects that are to be delivered between 2020 and 2023, the developer said it also

has an extensive land bank with optional extensions through its long-standing partnerships with key master

developers.

Azizi has another 100+ projects in planning that are projected to be delivered between 2023 and 2025.


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OMAN REVEALS PLAN TO BUILD MUSCAT

AIRPORT CITY IN MAJOR AVIATION PUSH Thursday, February 27, 2020

Plans have been unveiled to launch Muscat Airport City which will include a free zone, logistics hub and retail zone

as part of Oman's new National Aviation Strategy 2030.

The Oman Aviation Group is adopting a master plan to launch the project which will be made up of five main

areas including the Muscat Airport Free Zone spread across 3.3 million square metres and devoted to light

industries and storage activities for air freight, e-commerce, manufacturing and packaging of national products, in

addition to aviation equipment, office spaces, and an integrated service delivery station.

The project will also feature a 200,000 sq m logistics area for air freight services, a mixed-use project designated

for the offices of airlines and related economic sectors and a zone to host aviation, cultural and social activities,

innovation centres for the aviation sector and a specialised emergency hospital.

A hospitality zone, which occupies an area of 192,000 square metres, will include duty-free shops, offices for

travel companies and hotels for travellers.

The strategy also places importance on restructuring Oman Air by adopting a programme designed to address

gaps and support growth by updating its network of destinations, developing its products, and enhancing its sales

and marketing capabilities.

The 2030 strategy will also see the launch of the National Travel Operator online platform that effectively

connects Omani travel providers with customers in target markets.

In its first stage, the National Travel Operator will target the United Kingdom, Germany, France, Italy, Switzerland

and India alongside the Gulf countries.

The National Aviation Strategy 2030, launched by the Ministry of Transport, aims to strengthen Oman’s economy

by improving the aviation industry.

Dr Ahmed bin Mohammed Al Futaisi, Minister of Transport, said that the strategy will enable the aviation sector in

the sultanate to compete on a global level.


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DUBAI'S 3D PRINTED OFFICE BAGS

GUINNESS WORLD RECORD Wednesday, February 26, 2020

1. Dubai Future Foundation (DFF) was officially recognised as a new Guinness World Records title holder for

building the world’s first 3D-printed commercial building. The occasion added to the massive number of over 400

world records the UAE currently set.

2. DFF’s Office of the Future was awarded the prestigious Guinness World Records™ certificate for building up the

“First 3D-Printed Commercial Building” in the world at a ceremony held at Emirates Towers, Dubai, which was

attended by Khalfan Belhoul, CEO of Dubai Future Foundation and Talal Omar, Director – MENA at Guinness

World Records along with Foundation’s management and employees.

3. Created with just one printer which measured 20 feet high, 120 feet long and 40 feet wide, the construction of

the Office of the Future used 50 percent less manpower than conventional buildings of a comparable size and

produced 60 percent less construction waste.

4. Overall, it took 17 days to print, two days to install and three months to build, landscape and interior design.

Today, the office is home to DFF’s Dubai Future Academy (DFAc), a knowledge hub that seeks to prepare

generations of leaders with the skills and tools to understand and adopt emerging technology, as well as, address

future challenges that are facing our world today.

5. Commenting on the award, Khalfan Belhoul said: The Office of the Future’s success in achieving this global

recognition embodies the vision of the UAE leadership and their innovative spirit in realizing the importance of

adopting emerging technology such as 3D Printing and using it in the development of vital sectors and the

creation of new economic opportunities, further positioning Dubai and the UAE as a hub for innovation and a test

bed for emerging technologies.

6. He Continued: “Since its launch, the Office of the Future has contributed to enhancing the awareness of the

importance of 3D printing technology, which is seen as a promising sector that provides billions of dollars in

investment opportunities. It has also formed the first initiative aimed at achieving the outputs of the Dubai 3D

printing strategy launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum to develop a global model

that can be applied anywhere around the world”.

7. Talal Omar said: "The UAE continues to set the standards in global innovation, technology and sustainability.

The country and its leaders are true pioneers that revolutionize industries such as construction. As the global

authority on record-breaking we have constantly seen fascinating ways that the world is changing and today is

another example of that. It gives me great pleasure to be here to present the certificate”.

8. The UAE is well on its way to becoming a major incubator of innovation and future technology in the world, and

Dubai particularly, has showed no signs of slowing down. In line with the UAE’s Vision 2021 program, the Dubai

government has devised a bold strategy to be the world’s most innovative city by 2021.

9. Inaugurated in 2016, the Office of the Future is the first 3D-printed building of its kind and launched as part of

the Dubai 3D Printing Strategy. While other projects have tested various elements of 3D printing before, the Office

is the first real building to be built at scale, with full services, that people can use daily to create breakthrough

projects and initiatives with partners around the world that can help shape the 21st century for the better.







10. The building benefited from the hard work of many dedicated partners. The original design was drafted by

Gensler Architects, then adapted and improved by Killa Design; designers of the Museum of the Future currently

nearing completion in Dubai. Structural engineering was provided by Thornton Tomasetti, eConstruct and

Freysinett. The interior design was developed and built by Projex, the furnishing and office layout was provided by

Bene GmbH and the building’s striking landscape was designed by Cracknell.

11. Advanced materials were provided by BASF, Gulf Precast, NPPF and Golden Elements and its internal systems

were designed and provided by Syska Hennessy, China State Construction, Siemens, IT Serve and Huawei. The

building is a testament to what can be accomplished through collaboration and dedication to a common goal.

12. Currently the UAE hold over 400 Guinness World Records™ titles, of which Dubai has the lion share, making it

the number one Arab city in record breaking. Among the UAE’s Guinness World Records™ titles are the Burj

Khalifa, the tallest building in the world, the world’s Busiest airport for international passengers in Dubai

International Airport , the world’s largest mall.. Remarkably, the UAE continues to raise the bar in breaking world

records.

Source: Gulf News

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HOMEFRONT: 'SHOULD DUBAI OWNERS

STILL PAY SERVICE CHARGES DIRECTLY TO

DEVELOPERS?' Thursday, February 27, 2020

I have a studio apartment in Dubai Sports City. Every year I used to pay the annual charges to the developer. This

year I am trying to contact the developer to make the payment but I am not getting any response. I recently found

out there is a new system in Dubai where the payment does not go directly to the developer but instead goes to a

government account. So, if the developer does not respond what should I do? And how do I make the payment

for annual maintenance charges? AD, Dubai

Under a new government system called ‘Mollak’ [Arabic for ‘owners’], which came into effect late last year,

developers can no longer collect any service charges on behalf of property owners. Property owners or approved

property management companies acting on their behalf will assume the collection responsibility. This is the main

change of the Common Properties Law No 6 of 2019, which came into effect in November 2019. The collected

funds will go into service accounts of approved banks; this will allow property owners to see exactly how their

money is being spent and on what.

The Real Estate Regulatory Agency, or its approved financial auditor, also has to approve any increases in service

charges so developers can no longer unilaterally charge arbitrary sums without these approvals.

The law requires all fractional ownership properties in Dubai to have owners associations with approved property

management companies acting on their behalf. Again, this means developers can no longer take control in setting

these associations up or running them.

My advice is to find which property management company is now assuming the responsibility of collecting your

building's service charge monies and then deal directly with them. Try to speak to the previous building

management company or current security team. Alternatively you can find a list of management companies on

the Dubai Land Department's website www.dubailand.gov.ae.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for 35 years

in London and Dubai

The opinions expressed do not constitute legal advice and are provided for information only. Please send any

questions to [email protected]


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http://www.dubailand.gov.ae/







MODON PROPERTIES AWARDS DH2.37BN

OF RIYADH CITY SOUTH CONTRACTS Tuesday, February 25, 2020

Modon Properties awarded three infrastructure contracts worth a combined Dh2.37 billion for its Riyadh City

South project.

The infrastructure contracts for phases two and five of Riyadh City South, have been awarded to National Projects

and Construction, The Nael & Bin Harmal Hydroexport Establishment and Saif Bin Darwish Company.

“The awarded contracts will cover infrastructure works in phase two and phase five of Riyadh City South,

providing infrastructure works for over 6,000 plots that will cover 18 million square metres of land, with phase

two being 8.9 million square metres in size, and phase five being 9.9 million square metres,” said Sulaiman Al

Siksek, deputy chief executive of Modon.

The Riyadh City project is being built 30 kilometres from the UAE capital.

This is the second round of infrastructure contracts to have been awarded by Modon, with preliminary works

being awarded in July last year and the first phase of contracts awarded in September.

Awards for phases three and four are expected to be made in the second half of this year and Modon aims to

complete all the infrastructure works for Riyadh City South by the end of 2023, it said in a statement.

In total, the infrastructure works will include more than 6,000 residential plots, a university, five schools, two

nurseries, four health centres, 28 mosques, 61 commercial plots, three civil defence centres, five fuel stations,

four government facilities plots and three social services centres.


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UAE LUXURY HOMES CAN DO WITH A

DESIGN RESET Tuesday, February 25, 2020

Luxury living is a hard-earned privilege for the fortunate few who can afford it... and willing to pay a premium to

live the experience. But the one thing that doesn’t bode well with opulence is uniformity and standardisation.

The commoditization of luxury living spaces is quite prevalent in the UAE, as indeed in other parts of the world

with fast-growing city sprawls. That’s bad news for discerning seekers of opulent living spaces who value

personalisation.

But there are certain reasons for this - government policy being the main one. Building zones and zoning rules

define the framework. It is usually the municipality that provides a set of guidelines that dictate the framework for

architects and developers.

Plain-vanilla luxury

The problem is defined by the fact that we usually come out with similar types of planning and finishes that don’t

add any value and are very commercialised. This static thinking is not conducive to the elevation, enrichment and

enhancement of luxurious spaces.

It is important to avoid falling into the trap of repeating similar types of planning over and over again.

The needs and lifestyles of 20 years ago were so much different from what today’s seekers of luxury apartments

demand. Millennials are so different in terms of their outlook on life, which is reflected in their lifestyles. These

trends cannot be ignored when it comes down to designing and creating living spaces.

Change the mindset

There are many responsible parties who can change this approach - architects, developers, policymakers, and, of

course, end-users need to have a say. And it doesn’t necessarily need to be limited to the development of the next

batch of housing units in the pipeline. With today’s remodification techniques, homes deigned 15 years ago can

be made fit for millennials... and even for Generation Z.

At a micro, quick-fix level, this can be achieved by leveraging technology. Today, we have sensors that inform the

home when it is empty or that someone is inside. We have apps that are connected to a centralised electronic

system, so that there is no need to have switches on the walls to turn the lights off.

We even have tables and standalone furniture that can generate their own energy and serve as charging stations

if placed next to the windows in a way that they can absorb natural sunlight.

Build to order

At a more macro, longer-term perspective, it is important to understand who the end-users are, their needs and

how these will change tomorrow. In the UAE, for example, the typology is that of a family with a live-in helper, not

only because of comfort reasons but also because of the actual need to have domestic help as both spouses

usually have day jobs.

So, a maid’s room is considered an essential part of the house. Designs should strive to incorporate plans that

cater to having a separate unit with a separate entrance and access to allow privacy for both parties. Using the







latest security technology any associated risk of having a separate access to your own living space can be

prevented.

Another example are the areas which you use for less than an hour a day... like the dining table. The dining table

and kitchen counter can be combined, and taken onto a new level. Such small design innovations and

interventions in space can change the entire ambience of the house.

Source: Gulf News

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COMMERCIAL REALTY SECTOR SEEN AS

HUGE CONTRIBUTOR TO UAE'S ECONOMIC

GROWTH Tuesday, February 25, 2020

The commercial real estate industry in the UAE has been an established powerhouse for decades, and a

significant contributor to the economy. It is now well set to also take centrestage as a central contributor to the

UAE of tomorrow, which the government's economic and overall policy direction are laying the roadmap for. An

IoT and AI led digital transformation is taking shape in the UAE's commercial real estate sector, which will lead to

outstanding tenant experiences, unprecedented energy management and highly competitive business models for

CRE owners, unlocked by data-driven decision making and efficiencies.

Data-driven building operations heralds the beginning of CRE 3.0, the next chapter in predictive and future-ready

commercial real estate

Building operations generate huge quantities of data. In its first avatar of digitisation in the industry, automation

was the key area of focus, with sensors & systems defining the deployment of technology across a building

portfolio. In more recent decades, CaFM and other software like property maintenance and energy management

were added to the mix. The industry is now realising the incredible operational advantages it stands to gain by

recruiting IoT to collect system wide data, extract insights using AI analytics and gain system wide intelligence

through Machine.

In a recent benchmarking study we conducted across commercial real estate owners from the US, Middle East

and Indian markets, we found significant evidence supporting these trends. The '2020 State of CRE Operations

3.0' not only highlights the current state of the global real estate industry, but also reveals how the industry itself

is ready for change. The report found that 77 per cent of CRE owners prioritise tenant experience and are

allocating 39 per cent of their spending to it. Energy ROI is also taking precedence, while next-gen technology like

IoT, AI and ML, and Data, are seen as the path to informed decision-making and real-time, predictive outcomes.

Commercial real estate owners say they are looking to invest 65 per cent of Opex into data-driven energy

enhancements and 40 per cent into tech-driven predictive maintenance.

The key barrier that is holding back CRE's from evolving into the next phase of value-based building operations is

the complex web of siloed technology systems and multiple functions, with little to no unified visibility into real-

time building performance. With the success that data-driven technologies have delivered across several

industries, the industry has recognised its benefits and is at the turning point of this evolution. CRE's say they are

looking to harness tech to optimize operational spend, embed sustainable sustainability into daily operations to

improve energy ROI, while crafting seamless, delightful facilities experiences for tenants/occupants/users.

The mainstreaming of the Smart Cities vision will need to be built on a network of Connected Buildings. The next

evolution of commercial real estate, CRE 3.0, will serve this purpose well. Marked by the 3-pronged industry focus

on data extraction out of siloed building functions; data aggregation on a portfolio-central platform; as well as use

of modular apps to perform data-driven operations acting on the insight-rich operational data to enable

predictive portfolio operations, CRE 3.0 could be the blueprint for future-ready buildings.

The UAE's dynamic real estate industry will play a key role in the nation's next chapter







Already a nation that is acknowledged as being an early adopter of breakthrough technologies, the UAE is further

cementing its reputation for being future-ready, through the several people-centric and progressive policies and

initiatives its government has implemented, in recent years. And the now imminent Expo 2020 event in Dubai is

coming in at the perfect time in the country's journey. Citizen happiness and wellbeing has been explicitly

articulated as a matter of policy focus in the UAE, and the nation looks poised to emerge as a global leader

adopting a tech-driven evolution in user experiences, efficient use of resources and sustainability. Against this

backdrop, the UAE's commercial real estate industry is well positioned to play a key role in crafting the nation's

next chapter aligned with its local and global objectives.


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CHINESE INVESTMENT IN UAE REALTY ON

BACK BURNER Tuesday, February 25, 2020

Property developers in the UAE are discounting Chinese buyers from their new projects and also see less

participation due to growing coronavirus concerns.

Real estate companies say that they have not faced any payment challenges from existing buyers from China but

will wait for six months before committing to them again for their projects due to prevailing uncertainty.

"In general, UAE developers have lowered their budgets for sales and marketing aimed at potential buyers from

the Far East, specifically those from China. We expect less participation from the Chinese buyers when it comes to

new projects, at least until the third quarter of 2020," said Kalpesh Kinariwala, founder and chairman of Pantheon

Group.

"We do not foresee any issues with regards to the existing Chinese clients with post-handover payment plans. We

do, however, expect to see less participation from Chinese investors for at least the next six months," he added.

Dubai-based Samana Developers was also pinning hopes to attract a fairly large chunk of its sales coming from

Chinese buyers for its newly-launched Dh100 million Samana Golf Avenue project in Dubai Studio City. But the

developer has shifted its focus and will look to tap buyers from other countries.

"We were expecting 40 per cent of sales from Chinese buyers. Despite 0 per cent participation from Chinese

customers now, we will still achieve our target and expect to sell out the project in a maximum of four to six

weeks time," said Imran Farooq, CEO of Samana Developers.

Coronavirus has caused widespread concern across the world, affecting travel and tourism to and from China.

Also, investments to and from the country have also taken a hit due to severe travel restrictions in China and

other countries hit by coronavirus.

According to the Dubai Land Department (DLD), Chinese investors had pumped in up to Dh14.3 billion into the

emirate's property market by August 2018 and were among the top 10 investors. They also ranked fifth by

international investor nationality as per DLD transaction data for the third quarter of 2018, investing over Dh1.7

billion in the emirate's property market during that period. As per Dubai Tourism, Chinese tourists are the fifth-

largest source market by visitors to Dubai, accounting for over 1.03 million in 2019, marking a 15 per cent year-

on-year increase.

Atif Rahman, director and partner of Danube Properties, said as developers, they have not felt any impact until

now from the absence of Chinese buyers because their customers are mainly those Chinese who are based

outside China.

"The magnitude for the problem is high locally in China. Typically, our Chinese buyers do not include only Chinese

domiciled in China. We attract Chinese customers across the globe including the Chinese nationals living outside

of China," Rahman said, adding that it is not advisable to preempt and negate any business opportunity. "Chinese

investors bring a larger amount of foreign capital in the UAE and rest of the Gulf region. They remain integral part

of our business," he said.

According to Prathyusha Gurrapu, head of research and advisory at Core, Chinese tourists and investors have

been a growing demographic in both tourism and real estate sectors over the last few years.







"While the interest levels in the UAE property market remain strong from this demographic, in the interim, we

expect Chinese investment activity in the UAE as well as globally to be impacted as the situation evolves over the

coming days," she said.


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DUBAI HOLIDAY HOME OPERATOR INKS

DEAL WITH INDONESIAN HOTEL FIRM Sunday, February 23, 2020

Archipelago International, southeast Asia's largest privately owned and independent hotel operator, has

announced a new long-term partnership with Maison Privee, one of Dubai's fastest-growing holiday homes and

corporate rental management companies.

The licence agreement will see Archipelago enter the UAE market with the upscale 'Maison Privee powered by

Aston' brand.

The deal, which involves incorporating Maison Privee onto Archipelago's hotel platform, will also give Maison

Privee access to Archipelago's scaling expertise, distribution, marketing and corporate infrastructure in southeast

Asia, a statement said.

In 2018, Maison Privee announced the securing of a $4m Series A capital investment by a private investor and the

new agreement with Archipelago will see Maison Privee rapidly scaling up its room inventory, it added.

Broader choice

Gerard Byrne, managing director of Archipelago Overseas, said: "While not unique in the international context,

this is the first deal of its kind in the UAE, and not only serves to complement the government's strategic

accommodation goals for Expo 2020 but also gives our southeast Asian customers a broader choice when visiting

Dubai directly or via the holy cities in Saudi Arabia, as part of an Umrah or Hajj plus pilgrim package."

In a joint statement, Paul Mallee and Rami Shamaa, co-founders and joint managing directors of Maison Privee

said: "Having successfully secured significant private Series A investment in 2018, it was vital that we created the

right environment for that investment to work and to help us achieve our ambitious growth targets over the next

three years.

"Archipelago provides us with this platform and together with the brand equity of Aston and Archipelago's

reputation generally, both in this region and in southeast Asia, we feel very confident about this next stage of our

development."

Archipelago International operates Indonesia's largest portfolio of over 150 hotels with a further 100 new

properties under development across southeast Asia, the Caribbean, and the Middle East.

Maison Privee has a portfolio of over 200 apartments, penthouses and villas across Dubai and offers 'home away

from home' experiences.


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FINLAND LOOKING TO BOOST UAE TRADE

WITH EXPO 2020 DUBAI Sunday, February 23, 2020

Expo 2020 Dubai can provide the perfect platform for Finland to increase its presence in the region, according to

the country’s ambassador to the UAE, Marianne Nissilä.

Exports to the UAE from the Scandinavian nation were worth 242.4 million Euros ($263.7m) in 2018. “It’s a

considerable amount considering the size of the two countries,” Nissilä told Arabian Business.

Finnish exports have traditionally consisted of mobile phones, telephone networks, cranes, elevators and other

machinery and equipment.

In 2018, the largest export products were paper and cardboard products, specialty machines of various

industries, other electrical machinery and equipment, plastics, iron and steel, industrial machinery and

equipment, power machines and engines, telephone, radio and television equipment, and timber and cork.

However, Nissilä, who took up her post in Abu Dhabi on June 1 last year, is keen to see further exports of health

technology and education.

She said: “I see that there is potential for a lot more. Expo is one way to try to discover how to move forward and

succeed in working together and if we can do that I think we can take economic relations and trade to a

completely new level.”

Modest imports

Imports from the UAE to Finland, meanwhile, have been modest - about $11 million per year - and has mainly

been composed of plastic and textile products. In 2018, the largest imports were electronics, textiles and food

products.

“Expo is very important for Finland in reaching out to the Middle East region, the Gulf region, to the UAE and to

Dubai,” said Nissilä.

There are over 1,400 Finns living in the UAE, while about 50 Finnish companies have an office or a regional centre

in the country.

The 1,867 square metre Finland pavilion, Snow Cape, based within Expo 2020 Dubai’s Mobility District, is being

part-funded by the Finnish Government and half by 100 partner companies.

Out of the 173 days over which the expo will run, from October 20 this year to April 10, 2021, Finland has already

booked 130 days of events at the pavilion, where the partner companies can showcase their offerings to invited

guests.

Mika Lintilä, Minister of Economic Affairs of Finland, admitted trade relations “could be better”, but hoped expo

would act as a catalyst for improvement.

“As we know quite well, globally there is a lot of money and we try to find a parking place,” he told Arabian

Business. “I think we have companies here (UAE) who can offer parking places.”


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ROOM FOR GROWTH IN THE GCC:

OPPORTUNITIES AND CHALLENGES IN THE

HOTEL SECTOR Tuesday, February 25, 2020

Ramsay Rankoussi, Vice President, Business Development - Middle East, North Africa & Turkey and Elie Milky, Vice

President, Business Development - Middle East, Greece & Cyprus, outline the opportunities and challenges in the

hotel sector in the GCC

What is the hotel development market in the UAE and wider GCC like at present?

The constant desire for improvement, as well as efforts to further facilitate business in the region, together play

as a catalyst for foreign investments. This, in turn, stimulates local economies, puts innovation at the forefront

and consequently leads to consistent success. We foresee further growth and potential to diversify our hotel

portfolio across all sectors and all brands: from midscale to luxury; from Park Inn by Radisson to Radisson,

Radisson RED and Radisson BLU, and also Radisson Collection.

What do you see as the biggest opportunities and challenges for the sector?

The region offers many exciting opportunities punctuated by various challenges. Chief amongst such challenges is

the geopolitical uncertainty resulting in political tensions as well as security risks. The fact that the GCC remains

one of the safest places to visit and to do business in has kept this region attractive to consumers and investors

alike. Development activity has continued primarily in the UAE and Saudi Arabia as a result of positive investor

sentiment.

Oversupply is another challenge that parts of the region recently started facing as a result of the development

boom. This is the nature of any developing market on the road to becoming a mature market. Riyadh and Dubai

are solid examples.

The recent outbreak of the coronavirus epidemic has put further pressure on visitation as travellers worldwide,

not in from Asia, are scaling back on unnecessary travel until the situation is contained.

What do you see as the outlook for 2020?

The UAE is on track to becoming a mature market. The five-year uninterrupted oversupply situation in Dubai, for

instance, is not expected to continue as demand is expected to outpace supply once again starting from 2022,

with a slight pick-up in 2020 as a result of the build-up to Expo 2020.

In Saudi Arabia, Riyadh is seeing a strong recovery as business activity resumes on the back of Vision 2030, while

Jeddah and the holy cities are expected to also benefit from the boom in inbound tourism as the kingdom opens

its gates to the world. Feeder markets such as China, Russia, Africa, India and others will continue to keep hotel

operators busy as the industry continues to find ways to diversify its offering as well as its target markets.

Do you think there is still a big pipeline for more luxury hotels in Dubai?

More luxury hotels are needed but in key locations, with diverse offerings and offering different product types.

This is a long way from the classical luxury and the large number of luxury hotels that have flooded the market in

the past. Also, the industry, which has historically been fuelled by middle-aged business and leisure tourists from







advanced economies, is now transforming itself to cater to visitors of all ages from across the globe. This change

brings with itself numerous opportunities, but it also hides challenges. One of these changes is tomorrow’s

biggest travellers, a generation of millennials – currently 2.2 billion globally, who have started choosing affordable

lifestyle hotels over staying at high-end resorts. With five distinctive hotel brands including Radisson Collection,

Radisson Blu, Radisson, Radisson RED, and Park Inn by Radisson, the profile of our traveller will also vary from

location to location and from brand to brand.

Are hotel owners getting more competitive in their demands from operators?

Absolutely and rightly so! We foresee the biggest opportunities to be conversions and takeovers. Historically, our

group has been known for repositioning existing hotels under one of our brands and we believe we can continue

to replicate the same success as existing hotel owners look at ways of improving their returns.

What sectors, geography do you see the biggest demand for hotels in the GCC?

Definitely the Kingdom of Saudi Arabia. The new visa system is only one step towards the target which has been

set to exceed 100 million annual visits by 2030. Pilgrimage would remain the essential priority with the holy cities

but leisure destinations are being promoted to showcase some of the hidden attractions. Riyadh has been

successful in diversifying its offering from mainly business travel to the launches of multiple festivals,

entertainment and leisure activities.

Do you think there will be more consolidation within the industry going forward?

Indeed, but possibly to a lesser extent as most of the large-scale activity has already taken place. As the market

becomes more saturated and competitive, the industry is asked to look at ways of improving performance and to

continue to be commercially creative, and in recent years, consolidation was part of the answer.


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SAUDI ARABIA REVEALS PLAN TO EXPAND

NETWORK OF NEW ENTERTAINMENT HUBS Tuesday, February 25, 2020

The Saudi Entertainment Ventures Company (Seven) on Tuesday announced plans for the expansion of new

entertainment complexes to prime locations across the kingdom.

Established by the Public Investment Fund (PIF) and mandated to invest, develop and operate entertainment

destinations in Saudi Arabia, Seven said the new complexes will "meet the fast-growing tourism sector and

contribute to realising the goals outlined in Saudi Vision 2030".

It added that each complex will feature several entertainment and leisure choices including cinemas, play areas,

rides, F&B, and attractions.

Seven said it will develop several entertainment complexes in Jeddah, Makkah, Madinah, Taif, Yanbu, Al-Kharj,

Buraydah, Abha and Khamis, Jazan, Al Hamra and Al Nahda (near Riyadh), Dammam, and Al Khobar.

Abdullah Al Dawood, chairman of Seven, said the company is building the entertainment ecosystem of the

kingdom, having opened the first cinema in Saudi Arabia in 35 years.

“We have a clearly structured development plan to build 20 entertainment destinations, 50 cinemas and two large

theme parks in prime locations across the kingdom.

“We are committed to realising the goals of Saudi Vision 2030 to accelerate the creation of world-class

entertainment assets in the kingdom that support economic diversification, create new jobs, and contribute to

socio-economic progress. Our complexes will position the kingdom as an entertainment, culture and tourism hub

of the region,” he added.

Seven made the announcement at the second Future Projects Forum 2020, organised by the Saudi Contractors

Authority to showcase the future projects in the kingdom.

The final names, themes, components and features of the various entertainment complexes will be revealed in

due course, a statement said.


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WHAT TO EXPECT TO SEE AT SHARJAH'S

NEW ENTERTAINMENT HUB Tuesday, February 25, 2020

The UAE’s newest leisure destination, Madar, will open its doors to the public for the first time on Thursday.

Located in the heart of the Aljada megaproject in the Muwaileh district of Sharjah, Madar contains a cluster of

family-friendly attractions within a 600,000 square foot park.

From the Arabic word for ‘path’ or ‘orbit’, the name Madar represents the free movement of people around the

site, and also reflects the original design by Zaha Hadid Architects, a statement said.

The first phase of Madar will play host to a full calendar of engaging events every weekend. Featuring live

performances from artists, sportspeople and musicians, the theme of the first weekend will be ‘cultural fusion’,

while later events will focus on areas such comedy, music, food, gaming and film, the statement added.

Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada, said: “This is the first opportunity for members of the

public to experience a taste of Aljada, a project that is truly transformational for Sharjah. This destination is a new

place for families, for lovers of culture, for those who are looking for excitement and for those who are seeking to

learn. We want the Sharjah community to be a part of Aljada’s progress, and we look forward to welcoming

everyone to Madar.”

Prince Khaled bin Alwaleed bin Talal, vice chairman of Arada, added: “The launch of Madar at Aljada is an

important step in our mission to build a sustainable and smart city that represents a new future for Sharjah. With

more than 5,000 trees planted in this area alone, Madar shows how Aljada is set to become one of the greenest

destinations in the region.”

The first part of Aljada to be completed will be open to the public from 3pm on Thursday and will subsequently be

open between 10am and 10pm on weekdays, and between 10am and midnight on weekends.

Attractions on offer at Madar include:

* Zad, a new address for the UAE’s food lovers, which has 15 different brands, each housed in a redesigned

shipping container. Zad’s two zones consist of a drive-thru space and a more social picnic area, with extensive

seating.

* YourSpace has been designed as a fully-fledged events hall to benefit the entire Aljada community and will host

studios, exhibitions, markets and conferences.

* For outdoor events, Madar’s Amphitheatre has a maximum capacity of 500 people and can be used to host film

screenings, markets, parties and musical performances.

* Featuring tower frames, swings, embedded trampolines and slides, Playscape is an immersive children’s

adventure zone which also includes a climbing wall and activity nets.

* Designed by the students from the American University of Sharjah, the AUS Pavilion is a sweeping architectural

structure designed to provide shade and a communal area for residents and visitors to Aljada.

* The centerpiece of Madar is the Aljada Discovery Centre, an elliptical building that features an immersive, coil-

shaped ‘experience room’, that will allow visitors to experience different parts of Aljada from a 360-degree







perspective, using next-generation digital technology. It also features a show apartment and the Aljada café,

where visitors can relax and enjoy views of the community.

To be completed over three phases, the full Madar masterplan is over 25 football fields in size and will

incorporate a large range of facilities and attractions including a large public square, an extreme sports centre, an

‘edutainment’ complex, two retail zones, an 11-screen cinema and a large community park.


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OMAN'S TRADED REAL ESTATE ACTIVITY

RISES 4.9% YOY TO $7.2BN IN 2019 Sunday, February 23, 2020

The total value of traded real estate activity in Oman reached $7.2bn (OMR2.771bn) at the end of December 2019,

marking a 4.9% rise from $6.86bn (OMR2.641bn) in 2018, according to the sultanate’s National Center for

Statistics and Information.

The fees collected for legal actions dropped 2% year-on-year to $213.78m (OMR82.3m) in 2019, while the total

56,887 sales contracts also decreased 9.1% year-on-year to $2.36bn (OMR911.2m) in 2019.

Meanwhile, the value of mortgage contracts increased 13.2% to $4.75bn (OMR1.836bn) in 2019, compared to

$4.2bn (OMR1.62bn) recorded by the end of December 2018.

Close to 211,200 properties were issued by the end of 2019, marking a 5.5% decrease from the 223,492

properties issued the previous year, according to the state-run Oman News Agency.

In addition, the properties issued to citizens of the Cooperation Council for the Arab Gulf States reached 875 in

2019, compared to the 1,396 properties allocated in 2018.


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WHY INDIANS, PAKISTANIS ARE RACING TO

PICK UP STALLED DUBAI PROJECTS Tuesday, February 25, 2020

Dubai: There is a rush of investors, mostly from India and Pakistan, buying stalled residential projects in Dubai.

They are pumping in fresh funds to complete the projects before year-end.

The main target: Low- to mid-rise under-construction buildings that had hit the 40-50 per cent completion mark.

They're unfinished projects as the original developer ran out of funds.

Top locations

“That would be the ideal status for an investor coming in – they don’t have to spend months trying to get

clearance for designs, contractors, etc.,” said Mohammed Mustafa, Managing Director at Emsquare Engineering

Consultants.

“The structure is mostly done, and at that stage, a mid-rise building will only take another 5-8 months for

completion.”

The top locations for these investors are projects in JVC (Jumeirah Village Circle), Arjan, and clusters within

Dubailand.

Spike in demand

What explains the sudden spike demand for delayed projects?

In one word: Expo.

These investors are reasonably certain that once Expo 2020 Dubai opens in October, it will set off a captive

demand for mid-market residential options.

“So, anywhere from just before October 2020 to after April 2021, there will be an influx of visitors and a need for

short/long-term stays,” said Mustafa.

"It will be the peak time for renting out… or selling the entire building," he said.

"Even after the Expo, these investors are confident they can generate optimum yields – typically about 8 per cent

or so."

Cost of entry

A lot depends on the price investors are willing to pay to acquire the delayed projects.

On average, recent deals have been in the Dh40 million to Dh60 million range.

Investors are also particular that the projects they pick should not be on RERA’s (Real Estate Regulatory Agency)

"Tanmia" list of shelved/delayed projects.

"Investors do not want to spend any time on more paperwork for themselves," said Mustafa.

"The deal is struck with the developer directly, whom they pay off minus all liabilities. They bring in specialist

contractors/project consultants and immediately start work on site."







Emsquare, for example, is now working on multiple "turnaround" projects, both as a consultant and as investor-

partner. It is also handling a G+30 development in Business Bay, where the developer ran out of funds.

This project is headed for a late 2021/early 2022 completion.

Need for speed

Time is of the essence — everything hinges on getting the projects ready in time for Expo 2020 Dubai’s expected

peak months by the end of the year.

Investors will also prefer to deal in those projects that have not seen any offplan sales.

That way, they can set a fast pace towards project completion and then aim for a bulk leasing. These days, there

are real estate funds in the UAE that do have a keen eye on completed projects and where the units are rented

out, preferably on long leases.

"Investors coming from abroad are bringing their own equity — they have no need for bank financing," said Uzair

Razi, Chief Investment Officer at GCP, which acquired a stalled project in JVC in 2018 and is now looking at

completion by the second quarter this year.

Ample value

"But this is also attracting some UAE national investors who earlier would not have looked at projects in the

freehold space. They, too, find ample value in turning around "sick" projects – but they do it mostly through bank

financing unlike foreign investors.

"Capital gains are expected to be high, but on a rental cash yield basis. Investors are looking at high single digit

net returns."

A CHECKLIST FOR INVESTORS IN STALLED PROJECTS

• Deal only with the developer-owner of the project. If he can’t be found, it’s best to stay away.

• Make sure to have a thorough reading of all the project liabilities, including whether any units were sold as

offplan. If units were sold, it’s vital to keep the owners involved of any change in project status. This will save

headaches later on.

• Once the project is acquired, make sure the built structure does not have to be put through too many design

changes. Any such work will only delay the completion date.

• Depending on how long a project was stalled, any resumption of work will require inspection checks by the

authorities.

• Ask for a discount — Chances are that investors will get a discount to the prevailing rates in the market. "Semi-

built structures will attract the highest discount because it potentially involves not only changing the

contractor/sub-contractor, but in some cases the consultant as well," said Uzair Razi of GCP. "And therefore,

having to reconfigure floor plans. But typically, a discount is a function of the structure of the deal and what the

liabilities are."

Source: Gulf News

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DUBAI'S DRAKE & SCULL MAKING

SIGNIFICANT PROGRESS IN

RESTRUCTURING PLAN, SAYS CHAIRMAN Monday, February 24, 2020

Drake & Scull International has made significant progress with its long-running restructuring plan though the

process is complicated by factors including gaining approvals of a large number of creditors, its chairman said.

The Dubai-based contractor is saddled with debt ranging between Dh7.5 billion to Dh8bn that it inherited from

the previous administration, DSI chairman Shafiq Abdelhamid said in an interview with Al Khaleej newspaper on

Sunday.

The company's restructuring has taken a long time as it requires the approvals of 44 banks and more than 1,000

other creditors, Mr Abdelhamid told the Arabic-language newspaper. DSI held talks with the four biggest banks,

which together represent 40 per cent of the debt its owes, and the discussions have yielded "advanced results,"

he said, without elaborating.

DSI has struggled following a three-year oil price slump that began in 2014 and, in turn, heavily impacted the

property and construction sector in the region. The firm was also hit with allegations of misconduct among its

executive management last year, which then prompted the contractor to initiate an internal probe. Its shares on

the Dubai Financial Market have been suspended since November 2018 and its last filed accounts for the 2018

financial year show a full-year loss of Dh4.5bn on revenue of Dh798m, leaving the company with negative net

equity of almost Dh4.75bn.

The chairman also said the company was able to settle dues owed to some workers and had drafted a plan to pay

the rest of its staff, according to the Sharjah-based newspaper.

The company is now paying the salaries of its employees and workers on a regular basis, despite challenging

market conditions, Mr Abdelhamid said.

The firm has reduced headcount among non-essential staff, cutting costs, and is therefore able to cover its

expenses through its current projects, he said.

DSI is actively working on winning new projects while working on completing current ones, he added.

It is currently finishing existing projects worth more than Dh3bn, including Reem Mall, a contract worth Dh576m.


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INVESTCORP MAKES $164M ADDITION TO

US PROPERTY PORTFOLIO Monday, February 24, 2020

Bahrain-based alternative asset manager Investcorp invested $164 million (Dh602.4m) to acquire two properties

in the US as it continues adding to its portfolio of real estate investments in the country.

Through its real estate team in the US, Investcorp bought two residential properties in south Florida as it builds

on its US multifamily portfolio, the company said on Monday.

"Over the last several years, we have been actively building our US multifamily real estate portfolio by targeting

properties in strategic locations that enable us to capitalise on the secular trend toward renting rather than home

ownership,” said Yusef Al Yusef, head of the Gulf institutional clients group at Investcorp.

“The purchase of these properties in the attractive south Florida market aligns with our defined investment

strategy of targeting strong cash flow generating assets that we believe are positioned to generate consistent

returns while providing upside potential.”

The Manama-listed Investcorp ranked as the second-biggest international buyer of US multifamily properties in

2019, according to Real Capital Analytics.

Multifamily property portfolios represent the largest part of Investcorp’s global real estate portfolio, with an

approximate value of $2.3 billion. The portfolio is made up of 18 buildings containing more than 14,000 units in

15 markets. Since inception, the value of Investcorp’s real estate investments have totalled more than $18bn

across about 800 properties.

The purchase of the two apartment properties in south Florida provides Investcorp with a 95 per cent occupied

portfolio of 836 units.

The properties are in neighbourhoods with a number of retail and entertainment attractions and are close to

downtown Fort Lauderdale and south Florida’s employment hubs.

"The south Florida metropolitan area benefits from a strong, growing and diversified economy with a lower

unemployment rate and higher job growth expectations compared to the US national average," Investcorp said.

The Bahraini company, which counts Mubadala Investment Company as its biggest shareholder, said in

November it bought a portfolio of 126 industrial properties in the US for $800m. The transaction represents the

biggest real estate acquisition by the company at the time.

Established in 1982, Investcorp is one of the oldest Middle East alternative asset managers with $31.1bn of assets

under management as of December 31, 2019, according to its half-year accounts.

Last year, Investcorp entered into a partnership with Dock Square Capital – a company founded by former Florida

governor Jeb Bush – to expand its business in the US.


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https://www.thenational.ae/business/economy/investcorp-s-half-year-profit-slips-amid-global-economic-headwinds-1.974382

https://www.thenational.ae/business/economy/investcorp-s-half-year-profit-slips-amid-global-economic-headwinds-1.974382







HOW DUBAI PROPERTY RENTAL RATES

HAVE CHANGED OVER THE PAST DECADE Sunday, February 23, 2020

Dubai residents who have stayed for the long haul during the past decade or more will have experienced both

extremes of the rental market cycle.

Like any market, Dubai's property sector has had its ups and downs amid global economic fluctuations since

2008.

As a result, long-term tenants may have found they were paying almost half the annual rent at some point in time

compared with the earlier years.

Rental rates in 2008 were much higher than today with a rapidly expanding workforce and economy. But the

global financial crisis sent rents tumbling in 2009, and they remained subdued until 2012 as some recovery

emerged.

Market confidence rose again in 2013, when Dubai won the bid to host Expo 2020 and they peaked in 2014 before

a combination of low oil prices and a strong US dollar marked the beginnings of a correction.

There has been a steady fall in rental rates in the following years as additional supply continued to outweigh

demand. The emirate also started expanding away from the main thoroughfare of Sheikh Zayed Road and out

into the desert with a number of new communities.

Today's market is more tenant-driven as landlords use incentives such as multiple cheque payments, no

commission or inclusion of utility fees to retain and attract tenants.

Which areas of Dubai have had significant rental changes?

About all of them – no area is totally immune from market dynamics. But there are some which stand out

compared with others as rates have returned to levels similar to, or lower than, those that were paid back in 2010

or 2011.

In Dubai Marina, for example, the average cost of a one-bedroom apartment in 2008 was Dh130,000, according to

data from property services company Asteco, before falling to Dh63,000 in 2011. Rents in the area climbed in later

years to as high as Dh113,000, and by the end of 2019 were back down at an average of Dh58,000.

It is a similar story for the prime villa market, a five-bedroom property on Palm Jumeirah would rent for an

average of Dh450,000 in 2009 and 2010 before rising to as much as Dh725,000 in 2014, and by the end of last

year was back down to Dh440,000.

You can see the highest and lowest amounts paid for different areas of Dubai in the slideshow at the top of the

page.

What is the outlook for 2020?

The general consensus among property companies is that rents will keep falling although the speed of decline

may slow.

Apartment rents fell on average by 2.4 per cent in the second half of 2019, according to a recent Property Finder

Trends report.







“Demand has not been able to keep up with handovers and landlords are having to be flexible to attract and

retain tenants,” the report added.

That said, rents fell significantly in areas such as Jumeirah Village Triangle (13.8 per cent), Town Square (10.8 per

cent) and Dubai Sports City (10 per cent), where the volume of new unit deliveries was high.

As for the number of units coming this year, "I expect 40,000 to 50,000 units to be completed in Dubai in 2020,”

said Lynnette Abad, director of Data and Research at Property Finder.

Asteco, meanwhile, expects 39,000 new apartments this year and 10,600 villas after a total of 31,000 were

delivered in 2019.

"With more supply expected for handover in 2020, retention will become increasingly important and can be

achieved through competitive rates/incentives and proactive/professional property management," it added.

Savills expects 40,000 new units this year as projects started a few years ago when market conditions were

stronger are completed.

Andrew Cleator, luxury sales director at Luxhabitat, said he sees another good year for tenants and added "this

year we should see the larger conglomerate developers focus more on their under construction master

communities with units still in the pipeline; Dubai Hills Estate and Dubai Creek Harbour to name a couple".

Lower rents are a boon for families living in Dubai, according to Chestertons.

"The good news for tenants is there will be ongoing opportunity for social mobility as rents are likely to continue

to soften," it said in its Dubai Market report Q4 2019.

"As such, families will be able to move to communities once deemed beyond their budget. This includes

properties with more bedrooms, better locations and improved facilities."

Chesterstons said the UAE is, however, still providing decent yields in the long-term market for landlords, with

"popular communities offering returns of between 6 per cent and 9.5 per cent". Global cities such as London and

Hong Kong generate below 5 per cent.


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https://www.thenational.ae/business/property/excess-supply-makes-dubai-property-market-affordable-for-renters-and-buyers-1.977484







ARADA UNVEILS MADAR AT ALJADA,

SHARJAH'S NEWEST FAMILY

ENTERTAINMENT DESTINATION Sunday, February 23, 2020

Madar, a new leisure destination, is all set to open its doors to the public for the first time on February 27 during a

launch weekend that will be packed with entertainment activities and various attractions.

Located in the heart of the Aljada megaproject in the Muwaileh district of Sharjah, Madar contains a cluster of

family-friendly attractions all spread around a beautifully landscaped 600,000 square foot park. From the Arabic

word for 'path' or 'orbit', the name Madar represents the free movement of people around the site, and also

reflects the original design by Zaha Hadid Architects that incorporates a series of elliptical buildings surrounding a

central point.

The first phase of Madar will also play host to a full calendar of engaging events that will draw different parts of

the UAE community to Aljada every weekend. Featuring live performances from artists, sportspeople and

musicians, the theme of the first weekend will be 'cultural fusion', while later events will focus on areas such

comedy, music, food, gaming and film, with a wide range of activities for all ages.

Sheikh Sultan bin Ahmed Al Qasimi, chairman of Arada, said: "This is the first opportunity for members of the

public to experience a taste of Aljada, a project that is truly transformational for Sharjah. This destination is a new

place for families, for lovers of culture, for those who are looking for excitement and for those who are seeking to

learn. We want the Sharjah community to be a part of Aljada's progress, and we look forward to welcoming

everyone to Madar."

Khaled bin Alwaleed bin Talal, vice chairman of Arada, said: "The launch of Madar at Aljada is an important step in

our mission to build a sustainable and smart city that represents a new future for Sharjah. With more than 5,000

trees planted in this area alone, Madar shows how Aljada is set to become one of the greenest destinations in the

region."

The first part of Aljada to be completed, Madar is free to enter and will be open to the public from 3pm on

Thursday. The complex will subsequently be open between 10am and 10pm on weekdays, and between 10am

and midnight on weekends, with plenty of free parking for visitors.

The centerpiece of Madar is the Zaha Hadid Architects-designed Aljada Discovery Centre, an elliptical building that

showcases all the elements of the city's master plan, as well as providing prospective homeowners with an

opportunity to find out what living in Aljada is all about. Featuring a large open space lit by natural light coming

through double-height glass facades, the Discovery Centre also features an immersive, coil-shaped 'experience

room', that will allow visitors to experience different parts of Aljada from a 360-degree perspective, using next-

generation digital technology. The Discovery Centre also features a show apartment and the Aljada café, where

visitors can relax and enjoy views of the community.

To be completed over three phases, the full Madar masterplan is over 25 football fields in size (1.9 million square

feet) and is the focal point of Aljada. Designed by Zaha Hadid Architects, Madar is defined by lush green space and

many water features, and is fully walkable, even in the summer months. When fully completed, Madar will







incorporate a large range of facilities and attractions including a large public square, an extreme sports centre, an

'edutainment' complex, two retail zones, an 11-screen cinema and a large community park.


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SAMANA DEVELOPERS LAUNCHES DH100

MILLION RESORT-THEME PROJECT Sunday, February 23, 2020

Dubai - Dubai-based Samana Developers has launched Dh100 million Samana Golf Avenue project in Dubai

Studio City.

The developer will offer 50 per cent finance facility to its buyers while UAE lenders allow only 20 per cent. It also

offers guarantee of 24 per cent returns at 8 per cent per annum for 3 years.

With a payment option of pay 10 per cent on booking followed by 80 months at just 1 per cent makes it an

attractive option for those that are looking to move from rental accommodation allowing them to get a foot hold

on the property ladder.

The project has been distinctly designed with resort style features, mini golf, indoor and outdoor gymnasiums,

large swimming pool with swim up refreshment area, Jacuzzi, children's play area and pool with plenty of green

spaces and water features to create a healthy lifestyle.

Alan James Gammon, General Manager of Samana Developers, said: "We have a buyer-focused business model.

Our 24 per cent guaranteed rental return is hard to compete with in the Dubai's real estate market which only a

mature and sustainable developer can offer. Our sustainable business approach reflects our commitment to our

customers and to the Dubai's real estate market in general."

He said 50 per cent financing move by Samana Developers reflects its rent-to-own approach for homebuyers.

Samana Golf Avenue features 233 luxury studios, one and two-bedroom apartments some with private pools and

a world-class leisure deck featuring a golf putting green. Samana Golf Avenue covers an area of just under 80,000

square feet and the ground plus 4 structure houses over 200 covered parking bays, giving a built-up area of over

508 thousand square-feet.


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MAJID AL FUTTAIM POSTS SLIGHT INCREASE

IN ANNUAL EARNINGS, SEES IMPROVED

2020 Sunday, February 23, 2020

Majid Al Futtaim’s profit grew 1 percent to AED 4.6 billion ($1.25bn) in 2019, the company said in a statement on

Monday.

According to the MAF statement, revenue also increased one percent year-on-year to AED 35.2 billion ($9.58bn).

Additionally, the company said that operational cash flow amounted to 122 percent of EBITDA (earnings before

interest, taxes, depreciation, and amortization). The company’s total assets were valued at AED 63 billion.

In its outlook for 2020, MAF said it "plans further expansion in markets with high growth potential as well as its

home market, the UAE".

“Majid Al Futtaim’s financial performance is driven by a sustainable business model that continues to deliver

growth for the company,” CEO Alain Bejjani said. “In 2019, we advanced our diversification efforts by entering new

countries and expanding out footprint in priority markets, while maintaining strong financial discipline across our

portfolio.”

In 2019, MAF expanded its footprint in several markets, including the opening of Carrefour’s first store in Uganda,

the addition of three new shopping malls and the expansion of VOX Cinemas in Saudi Arabia, where 78 new

screens were added.

The report also showed that Majid Al Futtaim – Properties’ EBITDA was unchanged at AED 3 billion, while revenue

decreased by 1 percent to AED 4.6 billion. MAF credited the revenue decrease to “challenging market conditions”

on revenue per available room in the hotels.

On the retail side, Majid Al Futtaim – Retail saw a 2 percent increase in EBITDA to AED 1.4 billion, while revenue

grew 1 percent and stood at AED 28.1 billion for the year.

Majid Al Futtaim – Ventures saw a 30 percent growth in EDITDA by 30 percent to AED 416 million, primarily driven

by new sites in Saudi Arabia, Kuwait and Egypt. Revenues rose 17 percent to AED 2.8 billion.


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WHY RIYADH IS SEEING A RISE IN THE

NUMBER OF BUSINESS PARKS Sunday, February 23, 2020

A growing number of business parks are being built in Riyadh to cope with increasing demand for office space in

the capital of Saudi Arabia, according to new research.

Savills, the global real estate services provider, highlighted the introduction of business parks as an instrument to

meet the requirements of businesses and to continue to attract and retain talents.

Savills noted that business parks have proven to be more popular than traditional stand-alone buildings in

Riyadh. Gated and secured, they appeal especially to companies that require high level of security measures.

According to Savills report, the occupancy levels across office developments in Q3 2019 was around 85 percent

for business parks, 82 percent standalone towers and 69 percent for mixed-used projects.

Significant changes

Its new report also highlighted the entry of new business sectors, completion of key infrastructure projects and its

impact on the office real estate landscape in the city going forward.

David O’Hara, head of Saudi Arabia, Savills said: “The concept of office space has undergone significant changes

over the past few years. It has evolved from the ‘cubical’ set-up in the nineties to ‘open plan’ desk space in the

twenties and to ‘flexible’ and ‘co-working’ spaces today. This evolution has been driven by both changing business

requirements as well as evolving employment needs.”

He added: “Saudi Arabia has been witnessing major changes over the past few years with its undergoing

economic diversification which will result in rapid urbanisation and economic growth. With close to 40 percent of

the country’s population between the age of 20-40 years, it’s imperative to incorporate their requirements while

building projects.

"Riyadh is transforming smartly, hence the importance of introducing the concept of business parks to meet

evolving and new business needs while attracting and retaining talent.”

Corporate expansion

Savills said Riyadh is the largest and the most preferred city for corporate expansion into the kingdom. The city’s

office market has undergone significant growth over the past decade both in terms of the quality of space and its

geographic spread.

Most of the business parks are currently located or planned in the north east of the city, closer to international air

connections.

According to Savills report, the rise of business parks is also likely to attract new and various business sectors in

the next three years such as fintech, education, healthcare, entertainment, defence, transportation, consulting

and others which are related to initiatives outlined in Saudi’s Vision 2030 to reduce dependency on oil and gas.

O’Hara added: “From a property management and facility management point of view, the entry of global

companies and introduction of investment grade supply will necessitate the services of professional companies to

manage assets. This is important as it offers a competitive advantage and helps maintaining the quality and







service offering of the asset relevant to the changing market requirements. For the moment, most of the

developers prefer to carry out these services in-house but we expect this to change over the next few years.”


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DAMAC PROPERTIES GM REVEALS PLANS

FOR SAUDI EXPANSION Sunday, February 23, 2020

Dubai-based property developer Damac Properties is looking to expand into Saudi Arabia.

Ali Sajwani, general manager of operations, who has a strategic overview of the UAE and international businesses,

revealed in an interview with Saudi publication Arab News, that the kingdom is very much part of the company’s

future plans.

The 28-year-old said: “Over the next five years, under [Crown Prince] Mohammed bin Salman, it (Saudi) has all the

right ingredients – a visionary leader pushing the country and opening it up to foreign investors.”

He added: “We’re speaking to people all the time in Saudi Arabia – developers, the authorities and landowners.

We’re actively exploring that market and visit there regularly.”

International projects

Sajwani also said the company is looking to continue investing in the UK, while other international projects include

developing three lagoons in the Maldives, projects for Oman and Lebanon and a joint venture in Toronto, Canada,

Damac’s first foray into the North American real estate market.

Earlier this month, Damac Properties reported its first annual loss in a decade as sales and revenue fell

significantly in 2019 compared to the previous year.

While Sajwani conceded that there remained oversupply issues, coupled with weak demand, the former

economics student remained positive.

He said: “I think we’re at the bottom now in Dubai and we’ll see some slight improvement with Expo 2020. The

hotel and retail sector will do well out of Expo, and there should be a big inflow of tourists. Hopefully some of

them will decide to stay, and that could help drive property prices higher.”


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https://www.arabnews.com/node/1631791/business-economy

https://www.arabianbusiness.com/news/439903-dubai-developer-damac-posts-first-annual-loss-in-decade







MIDDLE EAST INVESTORS EYE

OPPORTUNITIES OUTSIDE LONDON Sunday, February 23, 2020

Investors from the Middle East are eyeing more opportunities outside of the UK capital, looking to regional cities

instead of London, according to global real estate advisor CBRE.

London, the long-time favoured destination for investors, is being overlooked as the preferred destination for

Middle East capital in favour of UK regions, like Birmingham, Bristol, Liverpool Edinburgh and Glasgow.

According to the property advisor, CBRE, Middle East investors deployed £880m into the UK regions in 2019,

compared to £650m in Central London.

CBRE revealed that investment into the UK from the Middle East in 2019 was down 60% on 2018, falling from

£3.7bn to £1.5bn.

Middle East investors deployed £230m in Scotland with transactions taking place in all of the major cities:

Edinburgh, Glasgow and Aberdeen. This included the £27m acquisition of Centrica’s HQ in Edinburgh by

BLME/Darin Partners.

Other notable transactions around the UK included the largest regional transaction of the year, the £140m

purchase of the Lewis Building and Priory Court in Birmingham by GII (bought by Gulf Islamic Investments which

has offices in Dubai and Abu Dhabi) as well as the £68m purchase of the Exchange Flags office building in

Liverpool by Ashtrom and Al Duwaliya’s purchase of Eagle House office building in Bristol.

Chris Brett, Head of EMEA Capital Markets, CBRE said: “In 2019 we saw a number of Middle East investors dispose

of their London assets as they reached the end of their investment cycles, including the sale of 25 Canada Square,

Citibank’s HQ. This group of investors have long been active in cities outside of London having invested £6bn the

UK regions in the last five years. However, this is the first-time regional investment activity has exceeded that in

London. Investors are increasingly attracted by the high levels of investment into regional infrastructure and the

opportunity to achieve greater yields.”


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UAE DEVELOPER SAYS NEW TOURIST VISA

TO CREATE OPPORTUNITIES Sunday, February 23, 2020

The UAE's new five-year multiple entry tourist visa policy will add stability to the real estate market, according to

the CEO of Lootah Real Estate Development.

Saleh Abdullah Lootah said the new policy would be a game changer for more than just the tourism industry and

will have a positive impact on the country's property markets.

He said it will bring an opportunity to create a new segment to the UAE's real estate sector - with developers

encouraged to build new projects for the frequent visitor.

"The substantial growth of tourism, starting with the 25 million visitors expected at the Expo 2020 will create a

new market segment of frequent visitors,” he said.

Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai

recently announced the new visa for all nationalities to support the country’s tourism economy and position itself

as the preferred destination in the region.

Stabilisation

Lootah said that the outcome of the new visa policy of the UAE will result in the stabilisation of the real estate

market as well as having a positive long-term effect.

The CEO also said that visitors who will capitalise on the 5-year multiple entry visa can start planning to look for

convenient investment options for properties that will match their experience, usage and leisure.

He said it will be an investment that will "appreciate in value over time that they can capitalise when they want to

sell the property".

Dubai's real estate industry ended 2019 strongly, as property sales transactions in Dubai hit an 11-year high.

The industry is expected to further pick up this year, especially with the upcoming Expo 2020.


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Jenny Weidling BA (Hons)

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[email protected]

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